b. the $2... For which of the following individuals would the opportunity cost of going to college be the highest? II. Given the following opportunity loss function, determine the loss when 7,000 units are sold. The out-of-pocket cost for the taxi cab and the movie ticket are $12. The opportunity cost of a decision is the next best foregone alternative. The lower the opportunity cost of doing an activity X, the more likely activity X will be done, b. d. $1.50. Suppose a person can produce either two bushels of wheat per hour or six bushels of corn per hour. Which of the following is correct concerning opportunity cost: a) Except to the extent that you pay more for them, opportunity costs should not include the cost of things you would have purchased a... Paula has the following information to evaluate long dash her current salary of $55,000 versus total revenues of $120,000 and expenses of $75,000 from starting a new business. Which of the following statements is false? b. exists for every decision made by individuals and businesses, but not by the government. What is the opportunity cost of 60 dozen orchids? The unit cost to manufacturing one unit of Z is presented below. d. transportation, parking, and entertai... Niall receives $100 as a birthday gift. Restaurants, bars, and convenience stores are often located near college campuses. As you read Section 2, fill in two supporting facts or details ... Free Algebra 2 worksheets (pdfs) with answer keys-each includes Page 3/5. b. the value of the best opportunity a student gives u... Economists use the phrase "There is no such thing as a free lunch," to illustrate the principle that a. inflation almost always results in higher prices over time. Both the heart rate monitor and running shoes cost $120, so he can only buy one. Discuss how to make decisions, based on opportunity cost. Earn Transferable Credit & Get your Degree. Investors expect the stock to pay a year-end dividend of $3. Ecuador can produce 50 thousand pounds of shrimp or 10 thousand bushels of wheat in a year. For students who accept... What are the tools that can be used to value non-financial opportunity costs? How about for making ca... An example of an opportunity cost is: a) the cost of pursuing a business opportunity. Ashanti can walk six dogs or mow three lawns in two hours. Andreas can knit 8 scarves per hour and 12 hats per hour. A firm should enter an industry if total revenue is equal to total cost. False. a). It takes US 50 units of labor to produce one ton of sugar and 200 units of labor to produce one crane. The opportunity cost of one unit of Weapons Grade Plutonium in France is _____ and the opportunity cost of one unit of Organic Tofu in France is _____. In the country of Zana, a unit of labor can produce 4 units of good X or 2 units of good Y; in the country of Bren, a unit of labor can produce 2 units of good X or 1 unit of good Y. becomes worthless)! c. opportunity costs. C. the ne... For any given benefit, a rational person chooses the option that has: A. the lowest opportunity cost. If she goes to college, she will spend $20,000 on tuition, $10,000 on room and board, and $2,000 on books. Opportunity loss: 6(9000 - X) for X leq 9000. Crusoe, in one hour,... What is meant by the opportunity cost of an item or activity? a. Which of the following are part of a firm's opportunity costs? B. a cost that is irrelevant to the business. My friends are so mad that they do not know how I have all the high quality ebook which they do not! Absolute Advantage. She hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. C. neither its explicit costs nor its implicit costs. The appropriate opportunity cost of capital is the return that investors give up on alternative investments that possess the [{Blank}] (same, different) level of risk. Assume you own an office building. The opportunity cost of watching this DVD for the fourth time A. is the value of the alternative use of the time you spend watching the DVD. How are changes in opportunity cost related to decision-making behavior? Suppose the government auctions off permits to car and truck owners, with each permit allowing the user to emit five tons of carbon dioxide each year from her or his vehicle. And its implicit costs plus explicit costs to our experts to be foregone to the. Farm and is trying to determine whether to go to Florida, the opportunity of getting the next best alternative! Herself is a dairy farmer and currently has revenues of $ 15 and a quantity of 80 firm! Spain is ____ a of all opportunity costs fit into the following part! 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